Imagine this; first thing in the morning when you’re on your way to work, some idiot driver ploughs into the rear of your car. So, you exchange details and decide to call your insurance company later that day.

You go home to sort through the problems the accident has caused, and before you manage to make the call to your insurer, someone is at the door?  This person represents the other drivers insurance company and he carries a check made out to you, to compensate you for your injuries!!

Now, with startling regularity, we hear about this kind of thing happening after a road traffic accident has occurred. It’s certainly a very quick response and perhaps seems too good to be true. Well it is! In fact the consequences of accepting an on the spot offer could be serious indeed.

There has to be something dubious about being able to offer a person compensation for injuries prior to them having taken legal advice or establishing the extent of the injuries with a medical professional. Indeed in some cases, an offer of compensation has been made before there’s even time for the crash debris to be cleared from the road.

Under the guise of a ‘pro-active service’, these quick fix offers come down to a money saving exercise. A person accepting this kind of quick compensation will be asked to sign a document to say that the one off payment settles claims relating to the incident in full. This means whatever kind of accident aftermath unfolds, no further claims can be made.

Any professional with knowledge of personal injury will explain that the seriousness of a person’s injuries following an accident cannot be determined for some time after the accident happens, certainly hours, and sometimes days. In fact in cases of Post Traumatic Stress Disorder or other psychological problems, the symptoms often do not manifest for some considerable time after the accident.

It’s certainly true that you may not receive as much money in compensation by accepting a quick fix payment but more importantly, you run the risk of missing out on the required treatment you might need in order to recover.

It is recommended that anyone involved in a road traffic accident should seek legal advice before settling a personal injury claim. A specialist personal injury lawyer will ensure that the claimant is sufficiently compensated for their injury and any subsequent loss.

As well as offering a no win, no fee service, good personal injury solicitors will make sure independent medical advice is sought, assess the extent of the claim, assess whether any treatment is needed and that all subsequent losses are recovered.

Unfortunately, some cases have been reported where people who accepted the same day compensation have suffered symptoms which continued for months or years after the accident occurred. In these cases, the claimants will have received less compensation than they were entitled to.

In an effort to regulate insurance companies in this area, the Motor Accident Solicitors Society and the Association of Personal Injury Lawyers asked its members for evidence of these offers of early settlement of claims from insurers so that the former Financial Services Authority can be made properly aware of this activity.

Until new regulations are brought in, the Association of British Insurers (ABI) have unveiled a voluntary code of practice aimed at the insurance companies operating this practice.

This new ABI code states that the insurer must make clear to the claimant their right to seek independent legal advice, that insurers should not go to the claimants home but make contact by telephone, email, text message or letter.